Question

• Central California winemaking industry

• Analyze how the economic concentration in the area you chose influenced the supply chain.
• Analyze which of the 4 factors of production were the most and least important in determining the economic concentration of the area you chose.
• Predict changes you anticipate for the area of economic concentration you chose. Support your predictions.

Answer 1

Economic concentration area is that area where the scope of production and supply is efficiently applicable. In this case, where a manufacturing company, i.e., a wine manufacturing industry is looking for the increase in supply, then it is very important to concentrate according to the economic conditions and the values.

In the given case, when organization is looking for a good supply and a good production opportunity in the area then it becomes important to recognize all the things. As we all know that supply creates its own demand which means, if there is a proper supply then the increase of demand is really effectively implemented. There are various economic factors which can be incremented like land, labor, capital and Entrepreneurship, these are the basic factors of production which are mostly applied here.

The least important factors are the government approach, the fund, the banking facilities and the approach to sell the goods in the Global market, so here these are my predictions that if we concentrate on the proper supply chain then it will increase the production and it will also increase as a good sense of competition in the economy concentrated area. It is good for the government to gain the taxes and good for the local retailers and the sellers to sell and grab the opportunities in economic concentrated areas.